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Informist, Friday, Aug. 14, 2026

 

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--Ashok Leyland Apr-Jun net profit INR 6.09 bln
--Analysts saw Ashok Leyland Apr-Jun net profit at INR 5.92 bln
--Ashok Leyland Apr-Jun revenue INR 96.34 bln
--Analysts saw Ashok Leyland Apr-Jun revenue at INR 97.47 bln
--Ashok Leyland Apr-Jun net profit INR 6.09 bln vs INR 5.94 bln yr ago
--Ashok Leyland Apr-Jun revenue INR 96.34 bln vs INR 87.25 bln yr ago
--Ashok Leyland Apr-Jun EBITDA INR 9.70 bln, unchanged on year
--Ashok Leyland Apr-Jun EBITDA margin 10.1% vs 11.1% yr ago
--Ashok Leyland net cash at INR 22.52 bln on Jun 30
--Ashok Leyland CEO: High raw material costs remain concern

 

By Anand JC

MUMBAI – For the June quarter, Ashok Leyland Ltd. reported the slowest year-on-year growth in its bottom line in the last three quarters, though it was higher than analysts' expectations. Its revenue grew at the slowest rate year-on-year in the last three quarters despite record high commercial vehicle sales during the reporting period. Ashok Leyland's profitability was affected by its overall expenses, which grew a tad faster than its overall revenues. 

 

The commercial vehicle maker's profit for the June quarter grew 2.6% on year but fell nearly 57% on quarter to INR 6.09 billion. Its from operations for the period grew 10% on year but fell 32% on quarter to INR 96.34 billion. Analysts had expected Ashok Leyland to report a net profit of INR 6.09 billion on revenue of INR 94.47 billion.  

 

The company incurred overall expenses of INR 88.89 billion, up 11% on year. Cost of materials form a significant portion of its total expenses. This expense grew 8% on year to INR 69.21 billion. Its staff cost grew 13% on year and other expenses 10% on year.

 

"While rising material costs remain a concern, the company is taking several initiatives towards better price realization, rigorous cost saving efforts, product and business mix improvement, and opportunity-based inventory build-up," Managing Director and Chief Executive Officer Shenu Agarwal said in a press release. 

 

Rising material costs meant the company's earnings before interest, tax, depreciation, and amortisation for the June quarter was flat year-on-year at INR 9.70 billion, but its margin contracted to 10.1% from 11.1% a year ago. Ashok Leyland reported net cash of INR 22.52 billion on its books as on Jun. 30, up INR 14.23 billion from a year ago. 

 

INVESTMENTS

The company's board has approved investing up to 25 million pound sterling, or around INR 3.25 billion in its UK-based subsidiary Optare Plc, as equity in one or more tranches. Set up in 2008, Optare is the holding company of the electric vehicle businesses of Ashok Leyland, including Switch Mobility Ltd. These funds will be used to repay loans and to meet other expenses.

 

Following this investment, Ashok Leyland's holding in Optare will increase to 93.49% from 93.28% now. Ashok Leyland's promoter Hinduja Automotive holds 6.26% stake in Optare. 

 

The board has also improved investing up to INR 5 billion in the equity shares of its step-down subsidiary Hinduja Housing Finance Ltd. The investment will be executed via purchase of shares from Ashok Leyland's material subsidiary Hinduja Leyland Finance Ltd. in one or more tranches.

 

Hinduja Housing Finance provides loans for purchase of residential houses. Ashok Leyland has 100% stake in this affordable housing finance company. The primary objective of this investment is to generate funds for business growth. "This could indirectly help AL (Ashok Leyland) by way of HLFL (Hinduja Leyland Finance) lending more to customers for CV purchases," the automaker said in a statement.
 

Both the deals are expected to be concluded by Mar. 31 next year.

 

At 1358 IST, shares of Ashok Leyland traded just over 2% lower at INR 172.50 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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